The widely known social network: Facebook have lost an approximate amount of over $90 billion in market value in the past weeks, with regards to the current crisis and data scandals Facebook has experienced these past few days. However, analysts are claiming that Facebook stocks is still worth buying, in which the superior financial research solutions: FactSet mentioned that over 90% of brokers who inspected the stock indicated that Facebook stock has a higher buy rating compared to other social networking firms like Snapchat and Twitter.
In accordance to this, also added that the 45 analysts who announced recommendations for Facebook stock declared an average target price of approximately $220 on its shares, which has exceeded the stance of the stock today by over 40%, and 14% above the company’s all-time high.
On Monday, along with the current Cambridge Analytica leak of over 50 million users’ information, Facebook shares declined by 6% after the FTC or the Federal Trade Commission declared that are investigating the company’s data practices. Facebook is now facing an investigation from the FTC due to the current data leak scandals, FTC mentioned in a report on Monday that the agency is taking serious press reports which heightened concerns about the privacy of Facebook.
FTC also added that if Facebook is proven guilty of violating a consent decree the company signed with the FTC in 2011, Facebook could carry a penalty of approximately $40,000 per violation.